Fraud

See the Top 10 NY Consumer Fraud Complaints for 2021

New York Attorney General Letitia James revealed the top 10 consumer fraud complaints, which include internet-related issues, landlord/tenant disputes, and retail-related problems

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What to Know

  • Internet-related issues were the No. 1 type of consumer fraud complaint received by the New York Office of the Attorney General in 2021, according to Attorney General Letitia James.
  • The revelation comes as James kicked off National Consumer Protection Week on Monday.
  • Internet-related scams accounted for 8,346 complaints across the state. The second-most common complaint had to do with landlord/tenant disputes (3,144), followed by retail-related complaints (2,678).

Internet-related issues were the No. 1 type of consumer fraud complaint received by the New York Office of the Attorney General in 2021, according to Attorney General Letitia James.

The revelation comes as James kicked off National Consumer Protection Week on Monday.

Internet-related scams accounted for 8,346 complaints across the state. The second-most common complaint had to do with landlord/tenant disputes (3,144), followed by retail-related complaints (2,678).

The following are the top 10 consumer complaints received by the Office of the Attorney General last year:

1. InternetInternet-Related (internet services and service providers, data privacy and security, digital media, data breaches, frauds through internet manipulation).8,346
2. Landlord / TenantLandlord/Tenant Disputes (security deposit releases, tenant-harassment).3,144
3. Retail SalesRetail related (price gouging, defective merchandise, poor customer service, pet stores, and animal breeders).2,678
4. ServicesConsumer related services (COVID-19 testing facilities, alarm companies, dry cleaners, restaurants, movers, services for personal household use).2,610
5. AutomobileAutomobile (sales, service, financing, repairs)2,283
6. CreditCredit (debt collection, credit card billing, debt settlement and debt relief, payday loans, credit repair, credit reporting agencies, identity theft)1,539
7. UtilitiesUtilities (wireless and residential phones, energy servicers and suppliers, cable, and satellite)1,145
8. Home Repair/ImprovementHome Repair/Improvement (repair issues, deceitful contractors)1,034
9. Health ClubsHealth Clubs (inability to cancel memberships, inability to access facilities, refunds not provided, no response from clubs)778
10. Furniture/AppliancesFurniture/Appliances (defective merchandise, delivery problems, and service and repair issues).611

“Let this list serve as a warning to all New Yorkers to keep their guard up against scam artists,” James said in a statement. “From inaccurate turnaround times for COVID-19 test results to deceitful debt collectors, scammers took advantage of these difficult times to mislead and deceive New Yorkers. My office is committed to rooting out fraudsters and protecting all New Yorkers, young and old, from harm."

James went on to say that New Yorkers should continue to report instances of fraud to her office.

"Consumers have been valuable in helping my office identify and eradicate fraud, and I urge them to remain vigilant and follow these tips," she said in her statement.

In an attempt to protect New Yorkers from scams, James offered some tips:

According to James, avoid using the same password for multiple accounts since cybercriminals use passwords stolen from one company for other online accounts.

Additionally, James recommends never reusing passwords since the practice puts consumers at risk.

According to James' office, make sure to enable two-factor authentication (2FA) whenever possible. 

"2FA can provide an extra layer of security by requiring anyone logging in to an account to provide another credential, such as a one-time code sent by SMS or email," James' office said.

It is also important to check your online accounts regularly for any unauthorized transaction. If you see something suspicious contact your online service (or credit card company, if appropriate) immediately.

James also recommends registering with a breach notification service that will send you notifications if an account associated with your email or phone number has been compromised.

James reminds New Yorkers that landlords must return your security deposit within 14 days of you moving out. If your landlord takes any money from the security deposit for damages, they have to provide an itemized receipt describing the damage and its cost. Additionally, if your landlord doesn’t give you this receipt within this timeframe, they must return your entire security deposit, regardless if there was damage. If the landlord fails to do so, the tenant may be entitled to up to twice the amount of the security deposit.

James' office also reminds New Yorkers, if they are having trouble paying rent, their local Department of Social Services may be able to help. To find offices, visit https://otda.ny.gov/workingfamilies/dss.asp. New York City residents can also call 311 and ask about rental assistance programs. More resources are available here: https://ag.ny.gov/coronavirus/tenants-rights#pay-rent

New Yorkers who see price gouging for vital goods and necessities should report it to the state's Office of Attorney General immediately, James said.

James reminds New Yorkers that COVID-19 testing facilities that advertise test-result turnaround times are required to accurately disclose how long it will take for individuals to receive their test results. Additionally, anyone who believes a lab or other testing facility is misleading consumers about their turnaround time should report it to the OAG.

Beware of deceptive sales tactics when purchasing or leasing a car, James' office warns.

Never sign any documents or leave the dealership with a car until all paperwork has been reviewed carefully, according to James. Additionally, never sign any blank documents that does not have numbers or terms filled in.

Consumers must always be sure that what they are signing is consistent with what the salesperson said and that they are not being charged for any extra accessories or products. Additionally, ask the salesperson or finance manager about the fees you do not understand and if they are required by law.

According to James, debt collectors are required to provide you with key information about the origin and history of your debt within five days of their initial communication with you. You also have a right to dispute the debt. If you do, the collector must stop attempts to collect until they provide information supporting their claim to the debt.

Debt collectors cannot harass you and must follow limits on how, and how often, they contact you. You have the right to tell debt collectors not to contact you at all.

Starting on April 7, creditors cannot sue you, or threaten to sue you, on debts that are older than three years.

Any consumer who believes they received a high utility bill as a result of a billing error should report it to OAG immediately, James said.

Additionally, if any New Yorker is having trouble paying their bill, contact the utility company. Utilities companies offer programs and payment plans to help.

The Home Energy Assistance Program (HEAP) helps low-income individuals pay the cost of heating their homes. Information on how to apply is available at otda.ny.gov/programs/heap/.

James recommends that before one enters into a contract to shop around for estimates, and check in with the Better Business Bureau, suppliers and neighbors for references.

Also, be aware that you have three days after signing a home improvement contract to cancel it.

The law further prohibits misrepresentations about consumers’ cancellation rights, James said.

New York’s Health Club Law authorizes gym members to cancel their membership under certain circumstances, including “after the services are no longer available or substantially available as provided in the contract because of the [gym’s] permanent discontinuance of operation or substantial change in operation,” and requires gym owners to provide monetary refunds, not credits, for cancellations within 15 days, according to James.

Always find out what a furniture or an appliance retailer’s return policy is before you buy it, the attorney general's office recommends.

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